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Global Business Ethics Nike’s Sweatshops Essay

1703 words - 7 pages

Global Business Ethics-Nike’s Sweatshops

Ann T. Dale
MGT/216

Global Business Ethics-Nike’s Sweatshops
Nike is a worldwide sports name in wear and equipment. So, why is Nike’s ethics in question? Has greed and publicity become their motto at any costs? Nike spends multimillion dollars a year hiring well-known athletes to advertise their products yet cannot seem to stay out of the media’s eye of their contracting or subcontracting techniques of their products to be built in third world countries. In 1996, Nike has been charged by critics with engaging in a variety of unethical employment practices in countries that exercise little or no control over the conditions of labor or whose ...view middle of the document...

20). According the Global Exchange (2001), “The time has come for the company to adopt the reforms which rights groups have advocated. It is indefensible that activists, consumers and most importantly Nike factory workers are still waiting for Nike to do it.”(para. 29). In many international manufacturing facilities have committed to reduce, reuse, and recycle (3R’s) hazardous waste to improve the employees working environment and cleanup communities environment. Nike has instituted a new refuse, replace, or reduce employee legal time off benefits with a 3R program for their employees human rights; 1) refused annual and sick time benefits, 2) replaced employee’s paid time off with cash, 3) reduced the employee’s time off (Global Exchange, 2001).
Nike has always had manufacturing shops in less developed countries. It was not until 1996 that they were accused of Nike has been very slow on acting on the ethical issues of their in overseas facilities. Although child labor, unfair labor practices, sweatshops, and corrupted government are illegal in many countries do not enforced the laws in the countries where Nike has set up shop. Although child labor/slave labor is not illegal in all countries, the United States makes it clear that the U.S. companies outsourcing their products do not associate themselves with such activities. Slave or child labor is when children are working for less money or no money for their living expenses or working in an unhealthy environment.
Many poverty-stricken countries such as Vietnam, Pakistan, and India not only accept but also practice child labor openly. These countries allow children to work to help support and feed their families. Instead of allowing their children to be extorted for such practice the government should step in and raise the cost of living, raise minimum wage and force Multinational corporations to pay a their employees more money. On the other side of the fence, it should be against the law for Multinational businesses open or move their facility to a country and pay at least the costs of living expenses.
In 1997, the United States prohibited all imported products produced by child labor. The International Labor Organization (ILO), now in place observes child labor worldwide. The ILO has promoted nations to implement processes that diminish unethical labor practices (DeGeorge, 2006). Since poverty a key ingredient to child labor and low education standards are key factor in child labor one of the ILO has generated areas where larger corporations can help build schools so the less developed countries can educate their children. Another way corporations have helped the lower income families is by paying them more then minimum wage so the children do not have to work. Companies worldwide are learning for the longevity of a company that for it is better to incorporate ethical business values starting out rather than trying to implement ethics later on. It is said that it took a boycott and...

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